PROPOSED 

PREVENTION OF SIGNIFICANT DETERIORATION 

PERMIT ISSUED PURSUANT TO THE 

REQUIREMENTS AT 40 CFR § 52.21

U.S. ENVIRONMENTAL PROTECTION AGENCY, REGION 9

PSD PERMIT NUMBER: NU 05-01 

PERMITTEE: Resolute Natural Resources Company 

1675 Broadway, Suite 1950 

Denver, Colorado 80202 

FACILITY NAME McElmo Creek Unit Oil Production 

Facility 

FACILITY LOCATION: Section 31, Township 40 South, Range 

25 East within the Four Corners Area 

on the Navajo Nation Indian 

Reservation near the city of Aneth, San 

Juan County, Utah

Pursuant to the provisions of the Clean Air Act (CAA), Subchapter I, Part C (42 U.S.C. § 7470, 

et. seq.), and the Code of Federal Regulations (CFR) Title 40, Section 52.21, the United States 

Environmental Protection Agency Region 9 (EPA) is issuing this amended Prevention of 

Significant Deterioration (PSD) air quality permit to Resolute Natural Resources Company 

(Resolute) for the McElmo Creek Unit Oil Production Facility as described herein, in accordance 

with the permit application (and plans submitted with the permit application), federal regulations 

governing the Prevention of Significant Deterioration of air quality (40 CFR § 52.21), and other 

terms and conditions set forth in this amended PSD Permit. 

Failure to comply with any condition or term set forth in this amended PSD Permit is subject to 

enforcement action pursuant to Section 113 of the Clean Air Act. This permit does not relieve 

Resolute from the responsibility to comply with any other applicable provisions of the CAA 

(including applicable implementing regulations in 40 CFR Parts 51, 52, 60, 61 and 63), or other 

federal, tribal, and local requirements. 

Per 40 CFR Section 124.15(b), this PSD Permit becomes effective 30 days after the service of 

notice of this final permit decision unless review is requested on the permit pursuant to 40 CFR 

Section 124.19. 

 

Deborah Jordan 

Director, Air Division 

 Date 
McElmo Creek Unit Oil Production Facility 

Proposed Amended PSD Permit No. NU 05-01 

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ABBREVIATIONS & ACRONYMS 

Act Clean Air Act [42 U.S.C. § 7401 et seq.] 

Applicant Resolute Natural Resources Company 

BACT Best Available Control Technology 

BTU British thermal units 

CAA Clean Air Act [42 U.S.C. § 7401 et seq.] 

CEMS Continuous Emissions Monitoring System 

CFR Code of Federal Regulations 

CMS Continuous Monitoring System 

CO Carbon Monoxide 

CO2 Carbon Dioxide 

DSCFM Dry standard cubic feet per minute 

EPA United States Environmental Protection Agency 

H2S Hydrogen Sulfide 

HHV Higher Heating Value 

hr Hour 

lb, lbs Pound, pounds 

MCU Facility / 

Facility 

McElmo Creek Unit Oil Production Facility 

min Minute 

MMBTU Million British thermal units 

MMCFD Million cubic feet per day 

NAAQS National Ambient Air Quality Standards 

NESHAP National Emission Standards for Hazardous Air Pollutants 

NNEPA Navajo Nation Environmental Protection Agency 

NOx Oxides of nitrogen 

O2 Oxygen 

Permittee / Owner or 

Operator 

Resolute Natural Resources Company, or the owner and/or operator 

of the McElmo Creek Unit Oil Production Facility 

ppm Parts per million 

PSD Prevention of Significant Deterioration 

PTE Potential to Emit 

SCF Standard cubic feet 

SCFM Standard cubic feet permit minute 

SO2 Sulfur Dioxide 

SOx Oxides of sulfur 

tpy Tons per year 

VOC Volatile Organic Compounds as defined in 40 CFR § 51.100(s) 
McElmo Creek Unit Oil Production Facility 

Proposed Amended PSD Permit No. NU 05-01 

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MCELMO CREEK UNIT OIL PRODUCTION FACILITY 

PREVENTION OF SIGNIFICANT DETERIORATION PERMIT 

PERMIT CONDITIONS 

PROJECT DESCRIPTION 

The McElmo Creek Unit Oil Production Facility (MCU Facility or Facility) is an existing oil and 

gas production operation located within the Four Corners Area on the Navajo Nation Indian 

Reservation near the city of Aneth, San Juan County, Utah. The Facility is owned, in partnership 

with the Navajo Nation Oil and Gas Company, and operated by the Resolute Natural Resources 

Company. The Facility is on the McElmo Creek Unit oilfield, which includes field operations 

and a gas compression plant. 

The field operations consist of approximately 90 producing wells where petroleum crude oil is 

recovered from producing strata, and brought to the surface to be stored at either a satellite or a 

tank battery. There are eleven satellites that function as testing facilities for producing wells and 

four tank batteries. 

The gas compression plant serves tertiary oil recovery operations for the McElmo Creek Unit 

oilfield. The gas compression plant receives produced gas through a gathering system, pressures 

the gas up to a suitable working pressure, and re-injects the gas to maintain reservoir pressure in 

the oilfield. The natural gas is injected with produced water in a dual injection system. Due to 

varying water injection demands in the field, and to the number of wells being serviced at any 

time, the gas compression plant inlet volume can vary between 10 and 18 million standard 

cubic feet per day (MMSCFD). The Main Flare is located at the gas compression plant. 

This PSD Permit amendment incorporates requirements of the federal Consent Decree that 

applies to the MCU Facility’s Main Flare (see United States v. Mobil Exploration and Producing 

U.S. Inc., Case No. 2:05–CV–319, filed June 8, 2005), which include Best Available Control 

Technology (BACT) emission limitations for emissions of sulfur dioxide (SO2), nitrogen oxides 

(NOx), carbon monoxide (CO), and volatile organic compounds (VOC). Air pollution emissions 

associated with this permit amendment will not cause or contribute to violations of any National 

Ambient Air Quality Standards (NAAQS) or any applicable PSD increments for the pollutants 

regulated under the PSD permit. 
McElmo Creek Unit Oil Production Facility 

Proposed Amended PSD Permit No. NU 05-01 

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EQUIPMENT LIST 

The following devices and activities are subject to this PSD Permit.

Unit ID Description 

Main Flare One (1) air-assist flare, rated at 618,104 scf/hr, which combusts 

produced field gas in excess of the facility compression capacity 

TEG Reboiler 

One (1) TEG Reboiler rated at 0.75 MMBtu/hr, which combusts 

purchased pipeline quality natural gas to provide heat to the Glycol 

Heater 

Glycol Heater One (1) Glycol Heater (TEG regenerator), rated at 12 MMCFD, 

which provides inter-stage dehydration for the HOS-6 compressor 

Gasoline Storage 

Tank 

One (1) 10,000 gallon nominal capacity gasoline storage tank that is 

used for refueling of vehicles 

PERMIT CONDITIONS 

I. PERMIT EXPIRATION 

As provided in 40 CFR § 52.21(r), this PSD Permit shall become invalid if construction: 

A. is not commenced (as defined in 40 CFR § 52.21(b)(9)) within 18 months after 

the approval takes effect; or 

B. is discontinued for a period of 18 months or more; or 

C. is not completed within a reasonable time. 

II. PERMIT NOTIFICATION REQUIREMENTS 

The Permittee shall notify EPA Region IX by letter or by electronic mail of the: 

A. date construction is commenced, postmarked within 30 days of such date; 

B. actual date of initial startup, as defined in 40 CFR § 60.2, postmarked within 15 

days of such date; 

C. date upon which initial performance tests will commence postmarked not less 

than 30 days prior to such date. Notification may be provided with the submittal 

of the performance test protocol; and 

D. date upon which initial performance evaluation of the continuous emissions 
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Proposed Amended PSD Permit No. NU 05-01 

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monitoring system (CEMS) will commence in accordance with 40 CFR § 

60.13(c), postmarked not less than 30 days prior to such date. Notification may 

be provided with the submittal of the CEMS performance test. 

III. FACILITY OPERATION 

A. At all times, including periods of startup, shutdown, shakedown, and malfunction, 

the Permittee shall, to the extent practicable, maintain and operate the Facility, 

including associated air pollution control equipment, in a manner consistent with 

good air pollution control practice for minimizing emissions. Determination of 

whether acceptable operating and maintenance procedures are being used will be 

based on information available to EPA, which may include, but is not limited to, 

monitoring results, opacity observations, review of operating maintenance 

procedures, and inspection of the Facility. 

B. The operating staff with management authority at this Facility shall be advised of 

and be familiar with all the conditions of this PSD Permit. 

IV. GENERAL MALFUNCTION REPORTING 

A. The Permittee shall notify EPA at R9.AEO@epa.gov within two (2) working days 

following the discovery of any failure of air pollution control equipment or 

process equipment, or failure of a process to operate in a normal manner, which 

results in an increase in emissions above the allowable emission limits stated in 

Section IX of this permit. 

B. In addition, the Permittee shall provide an additional notification to EPA in 

writing or electronic mail within fifteen (15) days of any such failure described 

under Condition IV.A. This notification shall include a description of the 

malfunctioning equipment or abnormal operation, the date of the initial 

malfunction, the period of time over which emissions were increased due to the 

failure, the cause of the failure, the estimated resultant emissions in excess of 

those allowed in Section IX, and the methods utilized to mitigate emissions and 

restore normal operations. 

C. Compliance with this malfunction notification provision shall not excuse or 

otherwise constitute a defense to any violation of this permit or any law or 

regulation such malfunction may cause. 

V. RIGHT OF ENTRY 

A. EPA and its contractors, consultants, and agents shall have authority to enter the 
McElmo Creek Unit Oil Production Facility 

Proposed Amended PSD Permit No. NU 05-01 

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Facility at all reasonable times, and upon presentation of credentials, shall be 

permitted to: 

1. Enter the premises where the Facility is located or where any records are 

required to be kept under the terms and conditions of this PSD Permit; 

2. During normal business hours, have access to and to copy any records 

required to be kept under the terms and conditions of this PSD Permit; 

3. Inspect any equipment, operation, or method subject to requirements in 

this PSD Permit; and 

4. Sample materials and emissions from the Facility. 

B. This provision in no way limits or otherwise affects any right of entry held by 

EPA pursuant to applicable federal, state, or local laws, regulations, or permits. 

VI. TRANSFER OF OWNERSHIP 

In the event of any changes in control or ownership of the Facility, this PSD Permit shall 

be binding on all subsequent owners or operators. Within 14 days of any such change in 

control or ownership, the Permittee shall notify the succeeding owner or operator of the 

existence of this PSD Permit and its conditions by letter. The Permittee shall send a copy 

of this letter to EPA Region IX within thirty (30) days of its issuance. 

VII. SEVERABILITY 

The provisions of this PSD Permit are severable, and, if any provision of the PSD Permit 

is held invalid, the remainder of this PSD Permit shall not be affected. 

VIII. ADHERENCE TO APPLICATION AND COMPLIANCE WITH OTHER 

ENVIRONMENTAL LAWS 

The Permittee shall construct in accordance with this PSD Permit, the application on 

which this permit is based, and all other applicable federal, state, and local air quality 

regulations. This PSD Permit does not release the Permittee from any liability for 

compliance with other applicable federal, state, and local environmental laws and 

regulations, including the Clean Air Act. 
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IX. SPECIAL CONDITIONS FOR THE MAIN FLARE 

A. Definitions 

1. “CO2 Breakthrough” shall mean an event where a gas or fluid injected in 

the Facility’s oil field for the purpose of promoting the production of oil 

contacts a producing well and results in an increase in gas volume to 

compressor station equipment. 

2. “Day” shall mean a calendar day, unless expressly stated to be a working 

day. In computing any period of time under Section IX of this PSD 

Permit, where the last day of such period would fall on a Saturday, 

Sunday, or federal holiday, the period shall run until the close of business 

on the next day that is not a Saturday, Sunday, or federal holiday. 

3. “Facility” shall mean the Permittee’s McElmo Creek Unit Oil Production 

Facility and associated oil fields, located near Aneth, Utah, on the Navajo 

Nation Indian Reservation. 

4. “Field Flares” shall mean the following flares at the Facility: (i) Tank 

Battery Flares at MCU Area 1 Battery, MCU Area 2 Battery, MCU Area 4 

Battery, and MCU Area 6 Battery; and (ii) Satellite Flares at MCU Section 

2, MCU Section 3, MCU Section 5, MCU Section 6, MCU Section 9, 

MCU Section 11, MCU Section 17, MCU Section 19, MCU Section 32, 

and MCU Section 33. 

5. “Flaring Incident” shall mean continuous or intermittent flaring at the 

Main Flare that results in the emissions of SO2 equal to, or greater than, 

five-hundred (500) pounds in any twenty-four (24) hour period; provided, 

however, that if five-hundred (500) pounds or more of SO2 have been 

emitted in a twenty-four (24) hour period and the flaring continues into 

subsequent, contiguous, non-overlapping twenty-four (24) hour period(s), 

each period of which results in emissions equal to, or greater than, five 

hundred (500) pounds of SO2, then only one Flaring Incident shall have 

occurred. Subsequent, contiguous, non-overlapping periods are measured 

from the initial commencement of flaring within the Flaring Incident. 

6. “Main Flare” shall mean the flare installed as part of the Facility’s former 

gas processing plant. 

7. “Main Flare Emissions” shall mean the emissions from the Main Flare at 

the Facility as well as all emissions that result from: (1) combustion of 
McElmo Creek Unit Oil Production Facility 

Proposed Amended PSD Permit No. NU 05-01 

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fuel gas in the Main Flare’s pilot, (2) the closed drain and filter backwash 

operations, (3) CO2 Breakthroughs, (4) any Scheduled Maintenance, and 

(5) unscheduled maintenance of the Facility’s compressors. 

8. “Malfunction” shall mean, for the purposes of reporting under Condition 

IX.I.3 of this PSD Permit only, any sudden and unavoidable breakdown of 

process or pollution control equipment. CO2 Breakthroughs and 

Scheduled Maintenance of the Facility’s compressors are not 

Malfunctions. 

9. “Root Cause” shall mean the primary cause of a Flaring Incident as 

determined through a process of investigation; provided, however, that if a 

Flaring Incident encompasses multiple releases of SO2, the “Root Cause” 

may encompass multiple primary causes. 

10. “Scheduled Maintenance” shall mean work that is part of the routine work 

plan for the compressors located at the Facility's former gas processing 

plant. This work is typically planned and arranged on a set frequency, 

usually based on periods of time (e.g., daily, weekly or monthly) or on the 

operating hours of the equipment. Scheduled Maintenance shall not 

include work necessitated by the failure of a part of a compressor. 

B. Air Pollution Control Equipment 

1. The Main Flare shall be an automatic air-assisted flare system.

2. The Main Flare shall be operated with a variable speed fan.

C. Emission Limitations 

1. The Permittee shall not discharge or cause the discharge of emissions from 

the Main Flare into the atmosphere in excess of the following the emission 

limitations, based on a cumulative 365-day rolling total. 

SO2 NOx CO VOC 

60.0 tpy 13.4 tpy 73.0 tpy 95.4 tpy 

2. The Permittee shall calculate the 365-day rolling emissions totals for SO2, 

NOx, CO, and VOC each day for the Main Flare. 

3. The Permittee shall not use the Field Flares to circumvent the emission 
McElmo Creek Unit Oil Production Facility 

Proposed Amended PSD Permit No. NU 05-01 

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limitations in Condition IX.C.1. 

4. All emissions during all modes of operation (including, but not limited to, 

emissions during periods of startup, shutdown, or malfunction) shall be 

used in determining compliance with the emission limitations in Condition 

IX.C.1. 

D. Main Flare Operational Requirements 

1. The Permittee shall install, operate and maintain an automatic air-assisted 

flare system on the Main Flare, pursuant to the provisions of 40 CFR § 

60.18(c)(5) and (f)(6). 

2. The Permittee shall operate and maintain the Main Flare in compliance 

with 40 CFR § 60.18(c)(l), (c)(2), (c)(3)(ii), (c)(5), (d), (e), (f)(1) through 

(f)(4), and (f)(6). 

3. The Main Flare shall be operated with a flame present at all times when 

emissions may be vented to them. 

4. The Permittee shall comply with the following requirements for ensuring 

proper combustion efficiency: 

(a) The Main Flare shall be operated with a variable speed fan. 

(b) The net heating value air assist dilution parameter (NHVdil) shall be 

greater than or equal to 24.4 BTU/ft2

, calculated as follows: 

ܨܦ ൌ ܳ௩௚ ൈ ܦ݅ܽ݉

ܳ௩௚ ൅ ܳ௦ ൅ ܳ௣௥௘௠௜௫ ௔௜௥ ൅ ܳ௣௘௥௜௠௘௧௘௥	௔௜௥

(Eqn 1) 

ܰܪܸௗ௜௟ ൌ ܰܪܸ௩௚ ൈ ܨܦ) Eqn 2) 

where: 

DF = Dilution factor, feet (ft). 

Qvg = Volumetric flow rate of the flare vent gas, scfm. 

Qs = Cumulative volumetric flow of total steam, scfm. 
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Qpremix air = Cumulative volumetric flow of premix assist air, scfm

Qperimeter air = Cumulative volumetric flow of perimeter assist air, scfm. 

Diam = Diameter of the flare vent gas release stack, ft. 

NHVvg = Net heating value of flare vent gas, BTU/scf.

NHVdil = Net heating value air assist dilution parameter. 

5. The Permittee shall also perform any necessary operations to minimize 

emissions so that emissions are at or below the emission limits specified in 

this Permit. 

E. Monitoring, Testing, and Emissions Calculations 

1. The Permittee shall use the following requirements to determine 

compliance with the emission limitations in Condition IX.C.1 for the Main 

Flare. 

(a) The Permittee shall measure and record the H2S concentration in the 

field gas at the Facility in each calendar month at the inlet to the 

Facility’s former gas processing plant where the Main Flare is located. 

(b) The Permittee shall continuously measure and record the volume of 

gas combusted in the Main Flare. 

(c) The Permittee shall install, operate and maintain continuous 

monitoring systems on the Main Flare for the usage of pilot gas and 

purge gas (other than nitrogen or other inert gas) by the Main Flare, in 

standard cubic feet per minute (SCFM). Readings shall be taken at 

least once every 5 minutes and the average hourly values shall be 

recorded on an hourly and daily basis. 

(d) Each and every calendar day, the Permittee shall calculate and record 

the daily emissions from the Main Flare based on the last recorded 

measurement of H2S concentration in the field gas at the Facility and 

that day’s recorded volume of gas combusted in the Main Flare. 

(e) Each and every calendar day, the Permittee shall calculate the 365-day 

rolling total of emissions of SO2, NOx, CO, and VOC for the Main 

Flare. Each 365-day rolling total shall be calculated using data from 

the previous 365 days. The Permittee shall maintain all records of 

actual operating data and calculations. 

(f) If the Permittee is unable to measure the volume of gas combusted in 
McElmo Creek Unit Oil Production Facility 

Proposed Amended PSD Permit No. NU 05-01 

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the Main Flare on any day, the volume of gas for that day shall be 

deemed to be equal to the daily average volume of gas combusted in 

the Main Flare based on the previous 12 months’ emissions data. 

However, the use of this daily average as substitute data neither 

relieves nor excuses the Permittee from complying with the sampling, 

data collection, and monitoring requirements. 

2. The Permittee shall use the following requirements to determine 

compliance with the operating limitations in Condition IX.D.4 for the 

Main Flare. The Permittee shall calculate and record the net heating value 

air assist dilution parameter of the field gas being combusted in the Main 

Flare as follows. 

(a) The Permittee shall continuously measure and record the following in 

the Main Flare: 

(1) The volume of field gas combusted; 

(2) The volume of perimeter assist air used; and 

(3) If pre-mix assist air is used, the volume of premix assist air 

used. 

(b) The flow rate monitoring systems must be corrected for the 

temperature and pressure in standard conditions (i.e., a temperature of 

20 °C [68°F] and a pressure of 1 atm). 

(c) The Permittee shall automatically supply supplemental fuel to the 

Main Flare if the field gas does not have sufficient heating value. 

(d) Continuous pressure/temperature monitoring system(s) and 

appropriate engineering calculations may be used in lieu of a 

continuous volumetric flow monitoring systems provided the 

molecular weight of the gas is known. For assist air, use a molecular 

weight of 29 pounds per pound-mole. For flare vent gas, molecular 

weight must be determined using compositional analysis. 

(e) The Permittee shall install a monitoring system capable of calculating 

and recording the net heating value air assist dilution parameter of the 

field gas being combusted in the Main Flare in sixty-minute averages, 

rolled every five minutes. 

(f) The Permittee shall determine the net heating value of flare vent gas 

(NHVvg) using 40 CFR 60.18(f)(3). 
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3. The Permittee shall continuously monitor the Main Flare for the presence 

of a flare pilot flame using a thermocouple or any other equivalent device 

to detect the presence of a flame, which monitoring shall be conducted in 

accordance with 40 CFR 60.18(f)(2). The heat sensing monitoring device 

shall be operated at all times. The Main Flare shall be equipped with an 

alarm that informs Facility operators of any period when a pilot flame is 

not present in the flare and no gas shall be sent to the flare until a pilot 

flame is restored. 

4. The Permittee shall operate the Main Flare with no visible emissions, 

except for periods not to exceed a total of 5 minutes during any 2 

consecutive hours. EPA Test Method 22 in Appendix A of 40 CFR Part 

60 shall be used to determine the compliance of flares with the visible 

emission provisions. The observation period is 2 hours and shall be used 

according to Method 22. The Permittee shall perform monthly visible 

emissions tests during a flaring event using Method 22. 

F. Operation and Maintenance of Main Flare and Compressors 

1. The Permittee shall at all times and to the extent practicable, including 

during periods of startup, shutdown, Malfunction, CO2 Breakthrough, 

Scheduled Maintenance, or unscheduled maintenance of the Facility’s 

compressors, operate and maintain the compressor station equipment and 

Main Flare in a manner consistent with good air pollution control practices 

for minimizing emissions. 

2. The Permittee shall comply with the provisions of the Operations and 

Maintenance Plan in Appendix A of this PSD Permit. The Permittee’s 

failure to comply with any requirement of the Operations and Maintenance 

Plan shall constitute a violation. 

3. The Permittee shall follow the procedures for the inspection of the 

Facility’s compressors and associated equipment as set forth in the Life 

Cycle Maintenance Plan in the Operations and Maintenance Plan in 

Appendix A of this PSD Permit, and shall maintain inspection logs at the 

Facility documenting that these inspections have been conducted. 

4. The Permittee shall maintain daily records at the Facility regarding 

operation of the Facility’s compressors on a Daily Plant Reading Form in 

the Operations and Maintenance Plan in Appendix A of this PSD Permit. 

5. The Permittee shall maintain a supply of designated spare parts for the 
McElmo Creek Unit Oil Production Facility 

Proposed Amended PSD Permit No. NU 05-01 

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Facility’s compressors and associated equipment that includes all of the 

equipment on the Spare Parts List in the Operations and Maintenance Plan 

in Appendix A of this PSD Permit. 

6. After using equipment on its Spare Parts List, the Permittee shall replace 

such equipment as expeditiously as possible. The Permittee shall place a 

purchase order for such equipment within 45 days after it is used. 

7. The Permittee shall conduct training of Facility operators in accordance 

with the Training Program for Plant Operators in Section IV of the 

Operations and Maintenance Plan in Appendix A of this PSD Permit. The 

Permittee shall maintain records documenting that the training has been 

conducted. 

8. The Permittee shall retain copies of inspection logs and other records 

required by Section IX.F (Operations and Maintenance of Main Flare and 

Compressors) of this PSD Permit. 

9. The Permittee shall maintain inspection, maintenance and repair log(s) or 

other similar records and identify any occasion when the Permittee was 

unable to carry out its established maintenance procedures, with 

explanation. 

G. Root Cause Analysis 

1. No later than 72 hours after an event first qualifies as a Flaring Incident, 

the Permittee shall notify by telephone, at (415) 947-8700, the Manager of 

the Air/TRI Enforcement Office, Enforcement Division of EPA Region 

IX, of such Flaring Incident. Telephone notification shall be followed by 

a detailed written notification to EPA, at the address in Condition X.C of 

this PSD Permit, made within seven (7) working days after the event first 

qualifies as a Flaring Incident. 

2. For a Flaring Incident caused by Scheduled Maintenance or a CO2

Breakthrough, the Permittee shall submit a report to EPA, at the address in 

Condition X.C of this PSD Permit, no later than sixty (60) days following 

the end of such a Flaring Incident that sets forth the following information 

listed below. Except for those Flaring Incidents caused by Scheduled 

Maintenance or a CO2 Breakthrough, the Permittee shall conduct a Root 

Cause Analysis in accordance with the Root Cause Failure Analysis 

Program in Appendix B of this PSD Permit to evaluate the cause of each 

Flaring Incident and shall submit a report to EPA, at the address in 
McElmo Creek Unit Oil Production Facility 

Proposed Amended PSD Permit No. NU 05-01 

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Condition X.C of this PSD Permit, no later than sixty (60) days following 

the end of a Flaring Incident, that sets forth all of the following: 

(a) The date and time that the Flaring Incident started and ended. To the 

extent that the Flaring Incident involved multiple releases either within 

a twenty-four (24) hour period or within subsequent, contiguous, nonoverlapping twenty-four (24) hour periods, the Permittee shall set forth 

the starting and ending dates and times of each release; 

(b) An estimate of the quantity of SO2 that was emitted and the 

calculations that were used to determine that quantity; 

(c) The steps, if any, that the Permittee took to limit the duration and/or 

quantity of SO2 emissions associated with the Flaring Incident; 

(d) Except for those Flaring Incidents caused by Scheduled Maintenance 

or a CO2 Breakthrough, a detailed analysis that sets forth the Root 

Cause and all contributing causes of that Flaring Incident, to the extent 

determinable; however, if a Flaring Incident is caused by Scheduled 

Maintenance or CO2 Breakthrough, then the Permittee need only 

identify the Root Cause as Scheduled Maintenance or CO2

Breakthrough (whichever is applicable), and either (i) describe the 

nature of the work done for Scheduled Maintenance or (ii) identify the 

specific wells that most likely experienced the CO2 Breakthrough; 

(e) An analysis of the measures, including possible design, operational, 

and maintenance changes, that are available to reduce the likelihood of 

a recurrence of a Flaring Incident resulting from the same Root Cause 

or contributing causes in the future. If the Permittee concludes that 

corrective action(s) is (are) required under Section IX.H (Corrective 

Action) of this PSD Permit, the report shall include a description of the 

action(s) and, if not already completed, a schedule for its (their) 

implementation, including proposed commencement and completion 

dates. If the Permittee concludes that corrective action is not required 

under Section IX.H (Corrective Action) of this PSD Permit, the report 

shall explain the basis for that conclusion; 

(f) To the extent that investigations of the causes and/or possible 

corrective actions still are under way on the due date of the report, a 

statement of the anticipated date by which a follow-up report fully 

conforming to the requirements of Conditions IX.G.2.d and IX.G.2.e 

of this PSD Permit will be submitted. Nothing in this Permit 
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Proposed Amended PSD Permit No. NU 05-01 

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Condition shall be deemed to excuse the Permittee from its 

investigation, notification, reporting, and corrective action obligations 

in this PSD Permit for any Flaring Incident that occurs after the 

Flaring Incident for which the Permittee has requested an extension of 

time under this Permit Condition.

(g) To the extent that completion of the implementation of corrective 

action(s), if any, is not finalized at the time of the submission of the 

report required under this Permit Condition, then, by no later than 

thirty (30) days after completion of the implementation of corrective 

action(s), the Permittee shall submit a report identifying the corrective 

action(s) taken and the dates of commencement and completion of 

implementation. 

H. Corrective Action 

1. In response to any Flaring Incident, the Permittee shall take, as 

expeditiously as practicable, such interim and/or long-term corrective 

actions, if any, as are consistent with good engineering practice to 

minimize the likelihood of a recurrence of the Root Cause and all 

contributing causes of that Flaring Incident. 

I. Compliance Reporting 

1. Within thirty (30) days following the end of each calendar semiannual 

period (i.e., January 1 to June 30, and July 1 to December 31), the 

Permittee shall submit to EPA a semiannual report. 

2. All semiannual reports shall be signed and affirmed by a responsible 

official, and bearing the certification statement as follows: 

“I certify under penalty of law that I have examined and am familiar with 

the information submitted in this document and all attachments and that 

this document and its attachments were prepared either by me personally 

or under my direction or supervision in a manner designed to ensure that 

qualified and knowledgeable personnel properly gathered and presented 

the information contained therein. I further certify, based on my personal 

knowledge or on my inquiry of those individuals immediately responsible 

for obtaining the information, that the information is true, accurate, and 

complete. I am aware that there are significant penalties for submitting 

false information, including the possibility of fines and imprisonment for 

knowing and willful submission of a materially false statement.” 
McElmo Creek Unit Oil Production Facility 

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3. All semiannual reports shall include the following information: 

(a) A list of the rolling 365-day cumulative Main Flare emissions for each 

day in that semiannual period; 

(b) A list of each day in the semiannual period when the emissions limits 

that apply to the Main Flare were exceeded and, for each such day, the 

limit(s) exceeded and the amount(s) of excess emissions; 

(c) A list of all emissions for the semiannual period that the Permittee 

claims are attributable to Malfunctions; 

(d) A list of all emissions for the semiannual period that may be 

attributable to CO2 Breakthroughs, Scheduled Maintenance, or 

unscheduled maintenance of the Facility’s compressors; 

(e) The date(s) and time(s) during the semiannual period when the 

thermocouple or flow meter associated with the Main Flare was 

inoperative; 

(f) The date(s) and time(s) during the semiannual period when the 

Permittee failed to measure or record the H2S concentration in the field 

gas at the Facility or failed to continuously measure or record the 

volume of gas combusted in the Main Flare; 

(g) A certification that during the semiannual period the Permittee 

operated and maintained the compressor station equipment and Main 

Flare in a manner consistent with good air pollution control practices 

for minimizing emissions, and performed all of the obligations 

(including, but not limited to, inspection and training obligations) 

contained in the Operations and Maintenance Plan in Appendix A of 

this PSD Permit; 

(h) A certification that the Field Flares have not been used to circumvent 

the emission limits that apply to the Main Flare; 

(i) A list of total emissions from the Field Flares and the reason for 

Flaring; and 

(j) Any and all reports generated from the root cause analysis and corrective 
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action program of Conditions IX.G and IX.H of this PSD Permit.

J. Recordkeeping Requirements 

1. The Permittee shall maintain a file of all records, data, measurements, 

reports, and documents related to operation of the Facility. All records 

shall be in a permanent form suitable for inspection. 

2. The Permittee shall retain the following records at the facility for a period 

of at least five (5) years from the date of monitoring, sampling, 

measurement, or reporting. All applicable records shall be maintained at 

the nearest manned facility and shall be readily accessible. 

(a) Each 365-day rolling total for SO2, NOx, CO, and VOC emissions; 

(b) Emissions calculations of SO2, NOx, CO, and VOC for the Main Flare, 

which shall include the emission factors, operating data and other 

supporting documentation that the Permittee used to calculate 

emissions of each pollutant; 

(c) Monthly H2S concentration in the field gas at the Facility; 

(d) Daily total volume of gas combusted in the Main Flare; 

(e) Gas throughput; 

(f) Records of gas analyses and testing; 

(g) Records of flare design for the Main Flare in accordance with 40 CFR 

60.18 (including whether the flare is steam-assisted, air-assisted, or 

non- assisted); 

(h) Semiannual reports required in Section IX.I (Compliance Reporting), 

of this PSD Permit; 

(i) A written log of the monthly inspections of the Main Flare containing 

the following information for each inspection: (i) the date and time of 

the inspection, and the name of the observer; (ii) a description of any 

corrective actions taken and repairs made; and (iii) the date(s) of 

corrective actions and repairs; 

(j) Visible emission readings, heat content determinations, flowrate 
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measurements, and exit velocity determinations made; 

(k) Periods when the pilot flame is absent or spark igniter(s) is inoperable; 

(l) Any and all reports generated from the root cause analysis and 

corrective action program, which shall include the following: 

(1) Date, time and duration of flaring; 

(2) Description of the event, including the flare(s) involved in the 

event and a discussion of the cause(s) and probable cause(s) of 

the event; 

(3) Confirmation that the flare(s) functioned properly, i.e., a flame 

was present and any visible emissions that occurred were in 

compliance with 40 CFR 60.18(f)(1); 

(4) Corrective actions taken during the event; and 

(5) A description of any actions taken to prevent or reduce the 

likelihood of similar future occurrences. 

(m)Inspection, maintenance and repair log(s) or other similar records; and 

(n) Any other records and reports required by this PSD permit. 

X. AGENCY NOTIFICATION 

A. Permit Applications & Permit-Related Requests. 

The owner or operator shall submit permit applications, permit amendments, and 

other applicable permit information, which includes but not limited to installation 

of control equipment, replacement of an emissions unit, and changes that 

contravene permit terms, to: 

Director, Air Division (Attn: AIR-3) 

U. S. Environmental Protection Agency Region 9 

75 Hawthorne Street 

San Francisco, CA 94105 
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B. Submittals to Navajo Nation Environmental Protection Agency. 

The owner or operator shall submit copies of all correspondence required by this 

PSD Permit to: 

Navajo Nation Environmental Protection Agency 

Air Quality Control Program and Operating Permits Program 

P.O. Box 529 

Fort Defiance, AZ 86504 

C. Compliance Reporting. 

Unless otherwise directed by the EPA or this PSD Permit, the owner or operator 

shall submit a copy of all test plans, reports, certifications, notifications, and other 

information pertaining to compliance with this PSD Permit to the following 

address. All notices and submissions shall be sent by certified mail, express mail, 

or similar overnight mail delivery with return receipt requested and addressed to: 

Director, Enforcement Division (Attn: ENF-2-1) 

U.S. Environmental Protection Agency, Region IX 

75 Hawthorne Street 

San Francisco, California 94105 

All notices and submission made in accordance to Condition X.C.1 shall be 

deemed submitted on the date postmarked. All notices and submissions made in 

accordance to Condition X.C.1 shall be signed and affirmed by a responsible 

official, and bearing the certification statement as follows: 

“I certify under penalty of law that I have examined and am familiar with the 

information submitted in this document and all attachments and that this 

document and its attachments were prepared either by me personally or under my 

direction or supervision in a manner designed to ensure that qualified and 

knowledgeable personnel properly gathered and presented the information 

contained therein. I further certify, based on my personal knowledge or on my 

inquiry of those individuals immediately responsible for obtaining the 

information, that the information is true, accurate, and complete. I am aware that 

there are significant penalties for submitting false information, including the 

possibility of fines and imprisonment for knowing and willful submission of a 

materially false statement.”